Runsystem Co., Ltd. (3326) AI Stock Analysis

• Market Cap: ¥3.37B
• Dividend Yield: N/A
• Average Volume (3M): 6.66K
• Price to Earnings (P/E): 39.6
• Beta (1Y): 0.63
• Revenue Growth: -10.41%
• EPS Growth: -69.48%
• Country: JP
• Employees: 128
• Sector: General
• Sector Strength: N/A
• Industry: Leisure
• EPS (TTM): 19.79
• Shares Outstanding: 4,380,900
• 10 Day Avg. Volume: 4,010
• 30 Day Avg. Volume: 6,660
• PEG Ratio: -0.93
• Price to Book (P/B): 10.42
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 2.46K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥799.00 ▲(23.49% Upside)
• Action: Reiterated Date: 01/09/26
• Date: Action: Reiterated 01/09/26

The score is primarily held down by weak financial performance (declining profitability and high leverage) and expensive valuation (very high P/E). Technicals are strong (price above key averages and positive MACD) but are tempered by extremely overbought momentum signals that increase downside risk.

Positive Factors

Recurring services revenue

Runsystem’s business model mixes project-based system development with recurring maintenance and operations contracts. This hybrid model provides recurring revenue streams and client stickiness, improving medium-term revenue visibility and reducing reliance on one-off project sales cycles.

Improving cash conversion

An improving operating cash flow to net income ratio indicates better cash conversion and operational cash generation. Sustained improvement would strengthen liquidity, support working capital and debt service, and reduce dependency on external financing over the next several quarters.

Slight gross margin improvement

A modest rise in gross margin suggests some control over project costs or pricing. If maintained, higher gross margins can provide a foundation for repairing operating profitability and absorbing SG&A, supporting longer-term margin recovery initiatives.

Negative Factors

High financial leverage

Runsystem’s elevated debt-to-equity and low equity ratio signal material leverage. High leverage raises interest and refinancing risk, constrains strategic flexibility, and increases vulnerability to revenue volatility, potentially forcing deleveraging or curtailed investment over multiple quarters.

Declining revenue and EPS

Sustained top-line decline and a steep EPS contraction point to weakening demand or margin pressure. Continued revenue and earnings erosion reduce scale benefits, limit reinvestment capacity, and strain stakeholder confidence, making operational turnaround and growth initiatives harder to execute.

Weak operating margins & constrained FCF

Weak EBIT/EBITDA margins combined with constrained free cash flow limit the firm’s ability to invest in product, retain talent, or pursue larger contracts. Persisting margin weakness and fragile FCF increase reliance on external funding and elevate medium-term execution risk.

Runsystem Co., Ltd. Business Overview & Revenue Model

Company Description

Runsystem Co.,Ltd. engages in the store management business in Japan. The company is also involved in the operation of amusement facilities, that includes billiards, darts, and karaoke, as well as casino games; and engages in the provision of real estate management services. In addition, it offers child development support and after-school day services; manages and operates cafe store that provides relaxation systems, and food and beverages, as well as sells, maintains, and manages various systems. Runsystem Co.,Ltd. was founded in 1988 and is headquartered in Sayama City, Japan.

How the Company Makes Money

Runsystem generates revenue through several key streams, primarily by offering software licensing for its ERP and SaaS products, which provides companies with essential tools for managing their operations. Additionally, the company earns income from consulting and implementation services, helping clients integrate its software into their existing systems. Ongoing maintenance and support services also contribute to recurring revenue. Strategic partnerships with other technology firms and resellers enhance its market reach and provide additional revenue opportunities. The company may also explore revenue from training programs aimed at educating users on its software solutions.

Runsystem Co., Ltd. Financial Statement Overview

Summary

Financial health appears weak: revenue and profitability declined, operating margins (EBIT/EBITDA) are weak, and the balance sheet shows high leverage with a low equity ratio. Cash flow has improved in conversion but remains volatile with constrained free cash flow.

Income Statement

Runsystem Co., Ltd. has experienced volatility in its income statement, with revenue decreasing from 2024 to 2025. Gross profit margin improved slightly, but net profit margin remains low due to declining net income. EBIT and EBITDA margins are weak, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage. The equity ratio is also low, suggesting limited shareholder equity relative to total assets. These factors point to potential financial instability and risk.

Cash Flow

Operating cash flow has shown some recovery, but free cash flow remains constrained. The operating cash flow to net income ratio improved, showing better cash conversion, but overall cash flow stability is a concern due to high financing needs.

Breakdown	TTM	Jun 2024	Mar 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.32B	5.41B	7.37B	4.94B	4.35B	4.92B
Gross Profit	1.06B	1.03B	1.01B	511.06M	139.58M	184.47M
EBITDA	373.65M	309.92M	314.10M	-8.95M	-449.22M	-659.69M
Net Income	103.47M	43.41M	99.72M	-235.16M	-682.41M	-951.08M
Balance Sheet
Total Assets	4.47B	3.80B	3.94B	3.42B	3.67B	3.65B
Cash, Cash Equivalents and Short-Term Investments	1.07B	862.66M	1.15B	771.69M	970.39M	486.60M
Total Debt	2.59B	2.60B	2.60B	2.54B	2.61B	2.81B
Total Liabilities	4.20B	3.58B	3.77B	3.34B	3.41B	3.54B
Stockholders Equity	267.00M	219.86M	176.46M	76.73M	253.11M	111.54M
Cash Flow
Free Cash Flow	0.00	930.00K	132.31M	-449.35M	-356.52M	-575.42M
Operating Cash Flow	0.00	249.99M	328.44M	-197.04M	-328.91M	-525.87M
Investing Cash Flow	0.00	-402.48M	128.26M	68.23M	208.00M	13.05M
Financing Cash Flow	0.00	-135.98M	-77.25M	-69.90M	604.71M	141.15M

Runsystem Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 647.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3326, the sentiment is Positive. The current price of 647 is below the 20-day moving average (MA) of 783.05, below the 50-day MA of 763.06, and below the 200-day MA of 653.31, indicating a bullish trend. The MACD of 5.58 indicates Positive momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 83.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3326.

Runsystem Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7085	76 Outperform	¥76.32B	17.55	―	2.22%	5.92%	20.63%
7092	74 Outperform	¥43.17B	17.21	―	1.95%	16.36%	38.48%
4680	67 Neutral	¥300.00B	18.72	―	1.51%	11.92%	33.70%
4801	61 Neutral	¥27.51B	24.31	―	1.85%	4.17%	-20.08%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
4343	52 Neutral	¥49.75B	37.49	―	―	6.00%	-184.09%
3326	47 Neutral	¥3.37B	39.59	―	―	-10.41%	-69.48%